Correlation Between Needham Small and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Needham Small and Lord Abbett at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Needham Small and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Needham Small Cap and Lord Abbett Government, you can compare the effects of market volatilities on Needham Small and Lord Abbett and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Needham Small with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Needham Small and Lord Abbett.
Diversification Opportunities for Needham Small and Lord Abbett
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Needham and Lord is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Needham Small Cap and Lord Abbett Government in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Government and Needham Small is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Needham Small Cap are associated (or correlated) with Lord Abbett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lord Abbett Government has no effect on the direction of Needham Small i.e., Needham Small and Lord Abbett go up and down completely randomly.
Pair Corralation between Needham Small and Lord Abbett
If you would invest 1,810 in Needham Small Cap on November 7, 2024 and sell it today you would earn a total of 59.00 from holding Needham Small Cap or generate 3.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 33.87% |
| Values | Daily Returns |
Needham Small Cap vs. Lord Abbett Government
Performance |
| Timeline |
| Needham Small Cap |
| Lord Abbett Government |
Needham Small and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Needham Small and Lord Abbett
The main advantage of trading using opposite Needham Small and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Needham Small position performs unexpectedly, Lord Abbett can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lord Abbett will offset losses from the drop in Lord Abbett's long position.| Needham Small vs. Needham Aggressive Growth | Needham Small vs. Needham Growth Fund | Needham Small vs. Baron Opportunity Fund | Needham Small vs. Jacob Micro Cap |
| Lord Abbett vs. Aqr Long Short Equity | Lord Abbett vs. Ultra Short Fixed Income | Lord Abbett vs. Old Westbury Fixed | Lord Abbett vs. T Rowe Price |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |